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2023-03-31-accounts

R C DIOCESE OF ABERDEEN

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

YEAR ENDED

31 MARCH 2023

SCOTTISH CHARITY NUMBER: SC005122

R C DIOCESE OF ABERDEEN

CONTENTS

Legal and Administrative Information 2
Report of the Trustees 3-7
Auditors’ Report 8-10
Statement of Financial Activities 11-14
Balance Sheet 15
Statement of cash flows 16
Notes to the Accounts 17-35

1

R C DIOCESE OF ABERDEEN

LEGAL AND ADMINISTRATIVE INFORMATION

Advisers

Bankers

Bank of Scotland 3/5 Albyn Place Aberdeen AB10 1PY

Solicitors

Raeburn Christie Clark & Wallace 12-16 Albyn Place Aberdeen AB10 1PS

Auditors

Sumer Auditco Limited 14 City Quay Dundee DD1 3JA

Address

2

R C DIOCESE OF ABERDEEN

ANNUAL REPORT

The Trustees present their annual report and financial statements of the charity for the year ended 31 March 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s Deeds of Declaration of Trust, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

The R C Diocese of Aberdeen in communion with the Apostolic See was established in 1131 and restored after the Reformation in 1878.

The R C Diocese of Aberdeen comprises four deaneries, covering 44 parishes in Aberdeen City, Aberdeenshire, Moray, the Highland Council areas, Orkney and Shetland. The parishes are established and operate under the Code of Canon Law (the law of the church) which confers on them separate canonical status, rights and obligations.

Governance

The R C Diocese of Aberdeen is legally constituted as a trust and the relevant Deeds of Declaration of Trust are registered in the Public Records of Scotland. The R C Diocese of Aberdeen is a registered Scottish charity (SC005122).

The Trustees of the Diocese are detailed on page 2 and were appointed in terms of the relevant Deed of Declaration of Trust. When new Trustees are appointed, they are given an introduction to the work of the Diocese and are provided with information they need to fulfil the roles, which includes information about the role of trustees and charity law.

Management

The Diocesan curia is the main vehicle at the disposal of the Bishop for the governance of his Diocese. It is comprised of various organs, offices and persons determined by law as well as other organs and persons which collaborate with the Bishop in his administration and governance of the Diocese. Amongst these are the offices responsible for the administration of the Diocese which take their conduct and direction from the code of Canon Law (the law of the church).

The Management Committee and two sub-committees meet quarterly to discuss and give advice on fabric, financial and major administrative matters. The Council of Priests meets with the Bishop twice a year to assist in matters of pastoral guidance. The College of Consultors, derived from the members of the Council of Priests, but separate from it, must be consulted upon matters of major administrative significance. For acts of extraordinary administration, as defined by Canon Law and quantified by the Bishops Conference of Scotland, the Bishop is required to consult, and in some cases to obtain the consent of, the Council of Priests and/or the College of Consultors.

Day to day administration of the Diocese is carried out by the Bishop with the support of his fellow Trustees, the appropriate committees, priests, lay advisors, volunteers and relevant secretarial and administrative staff. The Trustees are the key management of the Diocese and are not remunerated.

3

R C DIOCESE OF ABERDEEN

ANNUAL REPORT (CONTINUED)

Management (continued)

The Diocesan systems of internal controls, in line with Canon Law, are designed to provide reasonable assurance against material mis-statement or loss and include:-

Risk management

The principal risks faced by the RC Diocese of Aberdeen lie in the performance of investments and operational risks in the ability to ensure income levels are at least maintained.

The operational risk from maintaining income levels is managed by the Trustees, who are developing strategies to encourage the congregations of the parishes to continue to donate to the parish churches and the Diocese itself.

The Trustees consider variability of investment returns to be a financial risk. This is mitigated by the Endowment Trust of the RC Diocese of Aberdeen retaining expert investment managers and having a diversified ethical portfolio.

CONNECTED BODIES

The following charities are connected to the R C Diocese of Aberdeen charitable trust on the basis of control and supervision;

Endowment Trust of the R C Diocese of Aberdeen (SC007816) Blairs College Chapel Trust (SC025728)

as principal Trustee of R C Diocese of Aberdeen was also a member of the following bodies which are associated with or are supported by the Diocese. All are outside the scope of these accounts as they are separate entities which are not controlled by the Trustees of the R C Diocese of Aberdeen.

Bishops’ Conference of Scotland John Menzies Trust for Scotus College and Catholic Education Robert C Grant of Balgowan Trust Robert C Grant of Balgowan No 2 Trust Rev Charles C Gordon’s Trust Eskadale Trust John Menzies of Pitfodels Trust (Charleston Estate) Bishop George Hay’s Trust Supplementary Aid Society of R C Diocese of Aberdeen Garioch Charitable Trust Stella Maris

4

R C DIOCESE OF ABERDEEN

ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES

For two thousand years the Catholic Church has sought to preach the Gospel of Christ in response to His command to the Apostles.

In seeking to follow this mission the objectives of the R C Diocese of Aberdeen are defined in civil law in the Deeds of Declaration of Trust and are as follows:-

REVIEW OF ACTIVITIES

The R C Diocese of Aberdeen seeks to fulfil these objectives by the provision and support of various activities relating to pastoral care and assistance. The objectives are achieved principally through its parishes but also through various Catholic organisations and societies within the Diocese.

The Diocese of Aberdeen currently comprises 4 Deaneries, incorporating 44 parishes located in 6 local authority areas on both the mainland of Scotland and the islands of Orkney and Shetland and covering the largest land mass of any R C Diocese in Europe.

The Diocesan activities include support and guidance for clergy in the parishes, support for retired clergy, education of students for the priesthood and permanent diaconate, youth, financial support for national organisations through the Bishops’ Conference of Scotland, hospital and prison chaplaincies, university and ecumenical initiatives. Through these networks and initiatives the Diocese assists a significant number of beneficiaries across a wide range of ages and backgrounds. Work is done to help the homeless and needy both through parish, diocesan projects and links with other agencies.

The Curial Office of the Diocese covers the functions of chancery, safeguarding, approval of Catholic teachers as well as provision of financial, property maintenance, health and safety and GDPR advice to parishes.

ACHIEVEMENTS AND PERFORMANCE

Much of the work of the Diocese and many of its achievements in the pastoral field are by their very nature unseen and perhaps also unquantifiable. The Diocese has established new ways to share the regular celebration of Masses throughout the Diocese and other gatherings for prayer, faith formation and social events, which had been reduced or suspended, are all now continuing normally. Priests, Religious and lay people work together on a range of apostolic works most often aimed at serving those in greatest need.

The Diocese and its parishes rely heavily on hundreds of volunteers who give so generously of their time and talents to assist in the numerous activities in the life of the church and is indebted to these parishioners for their commitment and support.

The Diocese is committed to creating a safe environment in which to provide pastoral care and seeks to safeguard the welfare of all who are involved in whatever capacity with the Church and its organisations.

5

R C DIOCESE OF ABERDEEN

ANNUAL REPORT (CONTINUED)

FINANCIAL REVIEW

The Statement of Financial Activities on pages 11 to 14 shows total income of £3,373,690 (2022: £2,747,870) and total resources expended of £2,460,340 (2022: £2,206,619) to give net income before net (losses)/gains on investments of £913,350 (2022: £541,251). The value of the Diocesan share of the Endowment Trust saw a reduction in the valuation by £157,538 (2022: increase £376,745). A review of the property portfolio led to no properties being revalued leading to an unrealised gain of £NIL (2022: £356,000). The outturn for the year was an overall increase in funds of £755,812 (2022: increase £1,273,996).

Reserves Policy

The Management Committee maintain an annual budget for the Diocesan curial office and aim to maintain a positive balance in the bank accounts for each fund within the curial office and the parishes. The financial procedures in place, including the regular review of bank balances, ensures that this policy is achieved.

Total funds amount to £23,836,183 (2022: £23,080,371) of which £12,760,961 (2022: £12,480,016) are restricted parish funds and £4,969,463 (2022: £4,788,297) are restricted curial funds. Designated funds amount to £3,318,799 (2022: £3,285,903) reflecting funds allocated by the Trustees for specific purposes as described in note 12. Unrestricted general funds amount to £2,786,960 (2022: £2,526,155).

Principal Funding Sources

The principal funding sources of the RC Diocese of Aberdeen are voluntary income from parishioners, endowment income from the Endowment Trust of RC Diocese of Aberdeen and other donations and trust income.

Funds in Deficit

There were no funds in deficit by a material amount, apart from the parishes with closing reserves in deficit for the reason described in note 12.

Investment Policy

The RC Diocese of Aberdeen owns a share of the total funds of the Endowment Trust of the RC Diocese of Aberdeen. Details of the investment are shown in note 8. The Endowment Trust investments are managed by Investment Fund Managers with a view to providing both income and capital appreciation. All investments must be made on an ethical basis.

The primary objective of the investments is to produce an income for the Diocese, which includes the parishes. The target income set for the investment managers has been consistently met, even in the period following the financial uncertainly arising from the pandemic and the results of Brexit. The secondary objective is the growth of the fund value. A substantial drop in the value of the fund was experienced in March 2020, at the on-set of the pandemic, but the markets have made a recovery since then. This recovery has continued in 2022/23.

PLANS FOR FUTURE PERIODS

The RC Diocese of Aberdeen seeks to continue to promote the Gospel of Christ in accordance with the teachings of the Roman Catholic Church.

The Trustees and their advisors continue to monitor the financial position of the Diocese, ensuring good stewardship of resources and availability of funds to meet future commitments.

6

R C DIOCESE OF ABERDEEN

ANNUAL REPORT (CONTINUED)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees, who held office at the date of approval of this Annual Report as set out above, each confirm that so far as they are aware:

For and on behalf of the Trustees of the R C Diocese of Aberdeen.

Approved by the Trustees on …………………………………………..

7

R C DIOCESE OF ABERDEEN

INDEPENDENT AUDITORS’ REPORT

TO THE TRUSTEES OF THE R C DIOCESE OF ABERDEEN CHARITABLE TRUST YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of RC Diocese of Aberdeen Charitable Trust (‘the charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

8

R C DIOCESE OF ABERDEEN

INDEPENDENT AUDITORS’ REPORT

TO THE TRUSTEES OF THE R C DIOCESE OF ABERDEEN CHARITABLE TRUST (CONTINUED) YEAR ENDED 31 MARCH 2023

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Charities and Trustees Investment (Scotland) Act 2005 and Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

We have been appointed as auditor under Section 44(1)(c) Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Charities and Trustees Investment Act (Scotland) 2005 and Charities Accounts (Scotland) Regulations 2006. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management. There are inherent limitations in the audit procedures

9

R C DIOCESE OF ABERDEEN

described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

INDEPENDENT AUDITORS’ REPORT

TO THE TRUSTEES OF THE R C DIOCESE OF ABERDEEN CHARITABLE TRUST (CONTINUED) YEAR ENDED 31 MARCH 2023

Auditor’s responsibilities for the audit of the accounts (continued)

As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and the consolidation of individual parishes into the Diocesan reporting system and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with The Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

14 City Quay Dundee DD1 3JA

Date ……………………………………………..

Sumer Auditco Limited is eligible for appointment as auditor of the charity under regulation 10(2) of the Charities Accounts (Scotland) Regulations by virtue of its eligibility under section 1212 of the Companies Act 2006.

10

R C DIOCESE OF ABERDEEN

STATEMENT OF FINANCIAL ACTIVITIES Incorporating Income and Expenditure Account YEAR ENDED 31 MARCH 2023

Parish –
Unrestricted Restricted Restricted Total Funds
Total Funds
Funds Funds Funds 2023 2022
£ £ £ £ £
INCOME FROM:
Income from donations and legacies
Offertory collections and gift aid 165,773 35,451 1,686,628 1,887,852 1,549,943
Grants - 190,250 - 190,250 85,572
Donations, gifts and bequests 6,088 35,337 132,542 173,967 412,544
Trust income 10,665 - - 10,665 9,679
Income from other trading activities 22,904 - 129,928 152,832 109,698
--------------------------------- ------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Note 2 205,430 261,038 1,949,098 2,415,566 2,167,436
------------------------------------ ------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Investment income:
Endowment income and interest 28,231 271,171 277,602 577,004 302,539
Income from property 14,711 13,179 190,245 218,135 159,386
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
Note 2 42,942 284,350 467,847 795,139 461,925
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
Income from
charitable activities
Other income 18,198 13,272 19,831 51,301 1,994
Miscellaneous income 33,081 207 78,396 111,684 101,335
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
Note 3 51,279 13,479 98,227 162,985 103,329
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
Income from
charitable activities
Gain on sale of land and buildings - - - - 15,180
------------------------------------ ------------------------------------ ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Total income 299,651 558,867 2,515,172 3,373,690 2,747,870
------------------------------------ ------------------------------------ ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
EXPENDITURE ON:
Raising funds
Costs of generating voluntary income 18,064 300 - 18,364 11,584
Expenses of other property 93,042 3,000 - 96,042 124,408
----------------------------------------- ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
111,106 3,300 - 114,406 135,992
------------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------

11

R C DIOCESE OF ABERDEEN

STATEMENT OF FINANCIAL ACTIVITIES Incorporating Income and Expenditure Account YEAR ENDED 31 MARCH 2023 (continued)

Parish –
Unrestricted Restricted Restricted Total Funds Total Funds
Funds Funds Funds 2023 2022
£ £ £ £ £
Charitable activities
Parish running expenses (note 4) 168,891 5,098 1,111,056 1,285,045 1,231,637
Administration expenses (note 4) 401,166 51,603 120,551 573,320 307,429
Other expenses (note 4) 5,655 1,780 - 7,435 26,717
Payments to priests and religious
orders (note 4) 52,949 294,325 - 347,274 353,325
Bursary/Education 65,158 - - 65,158 93,569
Hierarchy - - - - 30,221
Donations 21,495 - - 21,495 1,291
Depreciation 12,087 - - 12,087 11,298
Administration: audit (note 4) 34,120 - - 34,120 15,140
Loss on disposal of property - - - - -
------------------------------------------ ---------------------------------- --------------------------------------------------- --------------------------------------------------- ---------------------------------------------------
761,521 352,806 1,231,607 2,345,934 2,070,627
------------------------------------------ ---------------------------------- -------------------------------------------------- -------------------------------------------------- --------------------------------------------------
Total expenditure 872,627 356,106 1,231,607 2,460,340 2,206,619
------------------------------------------ ----------------------------------- ---------------------------------------------------- ---------------------------------------------------- ----------------------------------------------------
Net income/(expenditure) and net
movement in funds before gains and
losses on investments (572,976) 202,761 1,283,565 913,350 541,251
Net (Losses)/Gains on investments
(note 8) (85,174) - (72,364) (157,538) 376,745
Net Gains on property revaluations
(note 8) - - - - 356,000
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------------------------- -------------------------------------------------------
Net income/(expenditure) (658,150) 202,761 1,211,201 755,812 1,273,996
Fund transfers (note 13) 951,851 (21,595) (930,256)
-		 -
---------------------------------------------- ------------------------------------ ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Net Movement in Funds 293,701 181,166 280,945 755,812 1,273,996
Funds reconciliation
Fund balances brought forward 5,812,058 4,788,297 12,480,016 23,080,371 21,806,375
---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Fund balances carried forward
(note 12) 6,105,759
==============================================		 4,969,463
==============================================		 12,760,961
==================================================		 23,836,183
==================================================		 23,080,371
==================================================

All of the activities of the Diocese for the current year are classed as continuing.

The notes on pages 17 to 35 form part of these financial statements.

12

R C DIOCESE OF ABERDEEN

STATEMENT OF FINANCIAL ACTIVITIES Incorporating Income and Expenditure Account YEAR ENDED 31 MARCH 2023 (continued)

Parish –
Unrestricted Restricted Restricted Total Funds Total Funds
Funds Funds Funds 2022 2021
£ £ £ £ £
INCOME FROM:
Income from donations and legacies
Offertory collections and gift aid - 21,203 1,528,740 1,549,943 1,103,331
Grants - 85,572 - 85,572 25,409
Donations, gifts and bequests 137,753 122,241 152,550 412,544 580,320
Trust income 9,679 - - 9,679 11,886
Income from other trading activities - - 109,698 109,698 67,942
------------------------------------ ------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Note 2
147,432		 229,016 1,790,988 2,167,436 1,788,888
------------------------------------ ------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Investment income:
Endowment income and interest 128,015 51,926 122,598 302,539 394,379
Income from property - 3000 156,386 159,386 123,948
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
Note 2 128,015 54,926 278,984 461,925 518,327
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
Income from
charitable activities
Other income 1,994 - - 1,994 -
Miscellaneous income 56,389 - 44,946 101,335 122,292
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
Note 3
58,383		 - 44,946 103,329 122,292
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
Income from
charitable activities
Gain on sale of land and buildings - - 15,180 15,180 1,750
------------------------------------ ------------------------------------ ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Total income 333,830 283,942 2,130,098 2,747,870 2,431,257
------------------------------------ ------------------------------------ ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
EXPENDITURE ON:
Raising funds
Costs of generating voluntary income - - 11,584 11,584 10,799
Expenses of other property 11,203 12,177 101,028 124,408 106,691
----------------------------------------- ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------
11,203 12,177 112,612 135,992 117,490
------------------------------------------ ------------------------------- ------------------------------------ ------------------------------------ ------------------------------------

13

R C DIOCESE OF ABERDEEN

STATEMENT OF FINANCIAL ACTIVITIES Incorporating Income and Expenditure Account YEAR ENDED 31 MARCH 2023 (continued)

Parish –
Unrestricted Restricted Restricted Total Funds Total Funds
Funds Funds Funds 2022 2021
£ £ £ £ £
Charitable activities
Parish running expenses (note 4) - - 1,231,637 1,231,637 1,001,904
Administration expenses (note 4) 259,668 47,761 - 307,429 290,346
Other expenses (note 4) 26,717 - - 26,717 15,963
Payments to priests and religious
orders (note 4) 271,688 81,637 - 353,325 364,123
Bursary/Education 7,591 85,978 - 93,569 92,165
Hierarchy 16,069 14,152 - 30,221 28,891
Donations 491 800 - 1,291 3,465
Depreciation 3,404 - 7,894 11,298 11,446
Administration: audit (note 4) 15,140 - - 15,140 12,600
Loss on disposal of property - - - - -
------------------------------------------ ---------------------------------- --------------------------------------------------- --------------------------------------------------- ---------------------------------------------------
600,768 230,328 1,239,531 2,070,627 1,820,903
------------------------------------------ ---------------------------------- -------------------------------------------------- -------------------------------------------------- --------------------------------------------------
Total expenditure 611,971 242,505 1,352,143 2,206,619 1,938,393
------------------------------------------ ----------------------------------- ---------------------------------------------------- ---------------------------------------------------- ----------------------------------------------------
Net income/(expenditure) and net
movement in funds before gains and
losses on investments (278,141) 41,437 777,955 541,251 492,864
Net Gains on investments (note 8)
158,067 104,363 114,315 376,745 1,356,628
Net Gains on property revaluations
(note 8) 31,000 - 325,000 356,000 -
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------------------------- -------------------------------------------------------
Net income/(expenditure) (89,074) 145,800 1,217,270 1,273,996 1,849,492
Fund transfers (note 13) 520,569 (21,329) (499,240)
-		 -
---------------------------------------------- ------------------------------------ ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Net Movement in Funds 431,495 124,471 718,028 1,273,996 1,849,492
Funds reconciliation
Fund balances brought forward 5,380,563 4,663,826 11,761,986 21,806,375 19,956,883
---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Fund balances carried forward
(note 12) 5,812,058
==============================================		 4,788,297
==============================================		 12,480,016
==================================================		 23,080,371
==================================================		 21,806,375
==================================================

All of the activities of the Diocese for the current year are classed as continuing.

The notes on pages 17 to 35 form part of these financial statements.

14

R C DIOCESE OF ABERDEEN

BALANCE SHEET AT 31 MARCH 2023

----- Start of picture text -----
|||||| |---|---|---|---|---| |2023|2022| |Note|£|£|£|£| |FIXED ASSETS| |Tangible assets|7|8,549,410|8,534,607| |Investments|8|11,665,548|11,823,090| |---------------------------------------------------|---------------------------------------------------| |20,214,958|20,357,697| |DEBTORS: amounts due after one year| |Loans|9|11,000|11,000| |CURRENT ASSETS| |Debtors|9|800,944|458,113| |Cash at bank and in hand|3,601,925|3,150,677| |----------------------------------------------|----------------------------------------------| |4,402,869|3,608,790| |CREDITORS: Amounts falling due| |within one year|10|125,207|206,372| |----------------------------------------------|----------------------------------------------| |NET CURRENT ASSETS|4,277,662|3,402,418| |---------------------------------------------------|---------------------------------------------------| |TOTAL ASSETS LESS CURRENT LIABILITIES|24,503,620|23,771,115| |CREDITORS: Amounts falling due| |after one year|10|667,437|690,744| |---------------------------------------------------|---------------------------------------------------| |NET ASSETS|23,836,183|23,080,371| |===================================================|===================================================| |THE FUNDS OF THE CHARITY:| |ACCUMULATED FUNDS| |Unrestricted Funds|12|6,105,759|5,812,058| |Restricted Funds|12|4,969,463|4,788,297| |Restricted Parish Funds|12|12,760,961|12,480,016| |---------------------------------------------------|---------------------------------------------------| |TOTAL CHARITY FUNDS|23,836,183|23,080,371| |===================================================|===================================================|

----- End of picture text -----

The financial statements were approved by the Trustees on and were signed by:

The notes on pages 17 to 35 form part of these financial statements.

15

R C DIOCESE OF ABERDEEN

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Note £ £ £ £
NET CASH (USED IN)/FROM/
OPERATING ACTIVITIES **15 ** (293,694) (162,507)
CASH FLOWS FROM
INVESTING ACTIVITIES OF
FINANCE
Investment income 795,139 461,925
Proceeds from sale of investments - 142,712
Payments to acquire investments - (18,573)
Payments to acquire property and
equipment (26,890) (134,585)
Proceeds from sale of property - 150,180
---------------------------------------------- ----------------------------------------------
Net cash (used in)/provided by
investing activities 768,249 601,659
--------------------------------------------------- ---------------------------------------------------
474,555 439,152
Cash flows from financing activities
Loan repayments (23,307) (27,896)
---------------------------------------------- ----------------------------------------------
Net cash (used by) financing
activities (23,307) (27,896)
--------------------------------------------------- ---------------------------------------------------
Change in cash and cash equivalents
in the year 451,248 411,256
Cash and cash equivalents brought
forward 3,150,677 2,739,421
--------------------------------------------------- ---------------------------------------------------
Cash and cash equivalents carried
forward 3,601,925 3,150,677
=================================================== ===================================================
Being:
Cash at bank and in hand 3,601,925 3,150,677
=================================================== ===================================================

16

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

a) Basis of accounting

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these financial statements. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statement in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The Diocese constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the Diocese’s ability to continue as a going concern. With respect to the next report period, 2023-24, the most significant areas of uncertainty which affect the carrying value of assets held by the Trust are the level of investment return, the performance of investment markets (see the investment policy and performance and risk management sections of the Trustee’s annual report for more information) and the effect on donations following the pandemic.

b) Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations are recognised when the diocese has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator / executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank. Endowment income is recognised once the income has been distributed by the Endowment Fund.

c) Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (e) below.

17

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

1. ACCOUNTING POLICIES (continued)

d) Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

e) Allocation of support and governance costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

f) Operating Leases

Rentals in respect of operating leases are charged to the statement of financial activities over the lease term. Other costs in respect of operating leases are allocated to the income and expenditure account over the remaining period of the lease.

g) Investments

Investments are included in the accounts at the market value of the share held by the Endowment Trust of the R C Diocese of Aberdeen attributed to the R C Diocese of Aberdeen.

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

h) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

i) Land and Buildings

The land and buildings owned by the Diocese at 1 April 1994 were previously included in fixed assets at the nominal value of £1. These included the cathedral, parish churches, church halls and presbyteries. The cost of these historic properties cannot be ascertained due to the historic nature of a significant number of them. Given the age of these properties, the net book value would not be material to the financial statements.

In 2008, presbyteries and halls, which are not attached to a church, were valued at market value or depreciated replacement cost. This balance is considered to be a reasonable estimate of the assets’ value to the charity and in future will be regarded as the initial carrying amount and not a revaluation.

Properties constructed after 1 April 2005 are capitalised.

j) Investment Properties

Investment properties are shown at their open market value. These properties are held for their investment potential. No depreciation has been charged on the investment properties.

18

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

1. ACCOUNTING POLICIES (continued)

k) Depreciation

Depreciation is calculated to write down the cost or valuation of tangible fixed assets over their expected useful lives at the following rates:

Leasehold 5% straight line Motor Vehicles 25% straight line basis Fixtures, Fittings and Equipment 15% straight line basis

No depreciation is charged on the land held.

No depreciation has been charged on buildings. The trustees consider that the residual value of the buildings is at least equal to its net book value therefore any depreciation charged would be immaterial.

l) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount of the services receivable estimated to relate to the future periods, measured on a pro rata basis.

m) Cash at bank and in hand

Cash at bank includes cash held in a bank current account, deposit account or a similar type of account, whilst cash in hand relates to petty cash held in the Diocese or Parishes for small or incidental expenses.

n) Creditors and provisions

Creditors and provisions are recognised where the Diocese has a current obligation resulting from a past purchase or event which will result in a future transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discount.

o) Financial instruments

The Diocese has financial assets and financial liabilities only of a kind which qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Concessionary loans are initially recognised and measured at the amount received, with the carrying amount adjusted in subsequent years to reflect repayments and adjusted if necessary for any impairment. The loan to a parish is a concessionary loan.

p) Restricted Funds

Amounts received which have a specific purpose, decided on by the donor, are held separately by the Diocese in restricted funds.

q) Designated Funds

Unrestricted amounts received which are designated by the Trustees for specific purposes are held separately by the Diocese in designated funds.

These designated funds are used only for expenditure which satisfies the criteria laid down when the designated funds were set up.

19

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

  1. ACCOUNTING POLICIES (continued)

  2. r) Judgements in applying accounting policies and key sources of estimation

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. In preparing these financial statements, the Trustees have made the following judgements:

Useful lives of tangible fixed assets

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also assessed as to whether there are indicators of impairment.

Investment property values

The Trustees have made an assessment as to the fair value of investment properties. Whilst no formal valuations have been carried out in the year, the trustees have a good working knowledge of current market values. Although there is some degree of estimation involved in arriving at the fair values the Trustees are content that any potential differences are wholly immaterial.

Accruals

Management estimate requirements for accruals using post year end information and information available from detailed budgets. This identifies costs and income that are expected to be incurred. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.

20

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 (continued)

2. INCOME

INCOME
Parish – 2023
Unrestricted Restricted Restricted Total
£ £ £ £
Donations and legacies
Offertory collections 140,276 35,451 1,428,300 1,604,027
Gift aid rebate 25,497 - 258,328 283,825
Grants - 190,250 - 190,250
Donations and gifts 6,088 17,817 1,499 25,404
Bequests - 17,520 131,043 148,563
Trust income 10,665 - - 10,665
Other trading activities
Fundraising 200 - 91,979 92,179
Sale of papers etc 22,704 - 37,949 60,653
------------------------------------ ------------------------------- ---------------------------------------------- ----------------------------------------------
205,430 261,038 1,949,098 2,415,566
==================================== =============================== ============================================== ==============================================
Parish – 2022
Unrestricted Restricted Restricted Total
£ £ £ £
Donations and legacies
Offertory collections - 21,203 1,093,256 1,114,459
Gift aid rebate - - 435,484 435,484
Grants - 85,572 - 85,572
Donations and gifts 7,800 122,241 147,170 277,211
Bequests 129,953 - 5,380 135,333
Trust income 9,679 - - 9,679
Other trading activities
Fundraising - - 88,223 88,223
Sale of papers etc - - 21,475 21,475
------------------------------------ ------------------------------- ---------------------------------------------- ----------------------------------------------
147,432 229,016 1,790,988 2,167,436
==================================== =============================== ============================================== ==============================================
Trust income
2023 2022
£ £
Bishop Hay’s Trust 10,665 9,679
Harold Hood Trust - -
------------------------------------ ------------------------------------
10,665 9,679
==================================== ====================================

21

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 (continued)

2. INCOME

Investment income

Parish – 2023
Unrestricted Restricted Restricted Total
£ £ £ £
Endowment income - 271,150 277,580 548,730
Interest received 28,231 21 22 28,274
Rent received 14,711 13,179 190,245 218,135
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------
42,942 284,350 467,847 795,139
==================================== =============================== ==================================== ====================================
Parish – 2022
Unrestricted Restricted Restricted Total
£ £ £ £
Endowment income 117,009 51,926 122,598 291,533
Interest received 11,006 - - 11,006
Rent received - 3,000 156,386 159,386
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------
128,015 54,926 278,984 461,925
==================================== =============================== ==================================== ====================================

Endowment income represents disbursements received from the Endowment trust of RC Aberdeen

3. INCOME FROM CHARITABLE ACTIVITIES

Other income

Other income
2023 2022
£ £
St Michael’s Centre 16,108 1,994
Sundry Income 35,193 -
------------------------------------ ------------------------------------
51,301 1,994
==================================== ====================================
Miscellaneous income
Parish – 2023
Unrestricted Restricted Restricted Total
£ £ £ £
Salaries 14,653 - - 14,653
Re-imbursements - - - -
Insurance claims & refunds 15,740 - - 15,740
Sundry 2,688 207 78,396 81,291
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------
33,081 207 78,396 111,684
==================================== =============================== ==================================== ====================================
Parish – 2022
Unrestricted Restricted Restricted Total
£ £ £ £
Salaries 13,032 - 10,107 23,139
Re-imbursements - - 2,348 2,348
Insurance claims 42,194 - 4,627 46,821
Sundry 1,163 - 27,864 29,027
------------------------------------ ------------------------------- ------------------------------------ ------------------------------------
56,389 - 44,946 101,335
==================================== =============================== ==================================== ====================================

22

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

4. CHARITABLE ACTIVITIES

CHARITABLE ACTIVITIES
Parish running expenses 2023 2022
£ £
Church running expenses 302,711 232,257
House running expenses 166,639 154,238
Maintenance and repairs 120,575 78,449
Approved repairs and projects 111,835 335,546
Insurance 122,304 67,918
Priests NI and employees’ salaries 116,425 98,867
Provisions 69,203 68,431
Office expenses 73,275 71,768
Stipends 15,006 7,491
Travel expenses 86,532 71,588
Conference, retreat and supply expenses 97,944 18,836
Hospitality and other expenditure 2,596 26,248
---------------------------------------------- ----------------------------------------------
1,285,045 1,231,637
============================================== ==============================================
Administration and running expenses 2023 2022
£ £
Bishop’s residence and office expenses 51,908 71,059
Bishop’s contingency fund 240 1,250
Administration costs 427,564 165,538
Light of the North Newsletter 6,434 7,054
Press Office 12,000 12,000
Diocesan Choir 6,109 2,564
Education 67,954 46,961
Day for Life Project – Family Care Centre 1,093 800
General expenses 18 203
------------------------------------ ------------------------------------
573,320 307,429
==================================== ====================================
Governance costs
Auditor’s remuneration 34,120 15,140
------------------------------- -------------------------------
Other expenses
2023 2022
£ £
Ogilvie Centre expenses - 2,639
Youth Projects - 2,500
St Michael’s Centre 53 21,157
Bishop’s contingency fund 3,500 421
Miscellaneous 3,882 -
------------------------------------ ------------------------------------
7,435 26,717
==================================== ====================================

23

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

4. CHARITABLE ACTIVITIES (continued)

Payments to priests and religious orders

5.
6.		 2023
2022
£
£
Priests’ allowances
123,173
116,326
Transport allowances
59,216
40,432
Clergy support payments
17,938
27,999
Sick and Retired Priests’ Costs
827
25,428
Other
12,425
16,498
------------------------------------
------------------------------------
213,579
226,683
Payments to/for Orders
133,695
126,642
------------------------------------
------------------------------------
347,274
353,325
====================================
====================================
AUDITOR’S REMUNERATION
2023
2022
£
£
Audit services
21,300
15,140
Audit – prior years’ under/(over)accruals
12,820
-
-------------------------------
-------------------------------
34,120
15,140
Audit related assurance services
-
-
-------------------------------
-------------------------------
34,120
15,140
====================================
====================================
STAFF COSTS
2023
2022
£
£
Salaries and wages
345,868
290,993
Social security costs
20,403
18,098
Pension costs
7,888
3,591
------------------------------------
------------------------------------
374,159
312,682
====================================
====================================

No employee received emoluments of more than £60,000.

The average number of employees for curial and parish activities during the year was as follows:

2023 2022
Head count 21 21
Full Time equivalent 11 11

24

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

6. STAFF COSTS (continued)

THE REMUNERATION OF TRUSTEES

The RC Diocese of Aberdeen considers its key management personnel comprise those who have the authority and responsibility for planning, directing and controlling the activities of the Diocese and Parishes. The Trustees, being the Bishop, Vicar General and Procurator, are those responsible for the direction of the Diocese. The Trustees of the Diocese receive no remuneration or reimbursement of expenses for their services as Trustees. Trustees who are clergy of the Diocese of Aberdeen may be housed, remunerated and reimbursed expenses for carrying out their ministry in the same way as other priests of the Diocese, in accordance with the Code of Canon Law. The Charities and Trustee Investment (Scotland) Act 2005 and The Charities Accounts (Scotland) Regulations 2006 require disclosure of remuneration and expenses paid to Trustees. All benefits received by the clergy who serve as Trustees are given on the same basis as all other clergy who are beneficiaries of the charity and cannot be reasonably calculated.

7. TANGIBLE ASSETS

Land and Fixtures, Fittings
buildings & Equipment Motor Vehicles Total
£ £ £
COST OR VALUATION
At 1 April 2021 8,484,144 100,145 1,160 8,585,449
Additions 132,778 - - 132,778
Net Transfers (135,000) - - (135,000)
Valuations 31,000 - - 31,000
Disposals - - - -
----------------------------------------------- ------------------------------- ------------------------------------ ----------------------------------------------
At 1 April 2022 8,512,922 100,145 1,160 8,614,227
Additions 21,485 5,406 - 26,891
Net transfers - - - -
Valuations - - - -
Disposals - (4,194) (1,160) (5,354)
----------------------------------------------- ------------------------------- ------------------------------------ ----------------------------------------------
At 31 March 2023 8,534,407 101,357 - 8,635,764
----------------------------------------------- ------------------------------- ------------------------------------ ----------------------------------------------
DEPRECIATION
At 1 April 2021 - 67,164 1,158 68,322
Charge for the year - 11,298 - 11,298
On disposals - - - -
--------------- ------------------------------- ------------------------------------ ------------------------------------
At 1 April 2022 - 78,462 1,158 79,620
Charge for the year - 12,085 - 12,085
On disposals - (4,193) (1,158) (5,351)
--------------- ------------------------------- ------------------------------------ ------------------------------------
At 31 March 2023 - 86,354 - 86,354
--------------- ------------------------------- ------------------------------------ ------------------------------------
NET BOOK VALUE
At 31 March 2023 8,534,407 15,003 - 8,549,410
============================================= =============================== =============================== ==============================================
At 31 March 2022 8,512,922 21,683 2 8,534,607
============================================ =============================== =============================== ==============================================

25

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 (continued)

7. TANGIBLE ASSETS (continued)

The buildings used for charitable purposes consist of the cathedral, other parish churches, church halls and presbyteries.

8. INVESTMENTS

Fixed asset listed Investment
investments properties Total
£ £ £
Movement in fixed asset listed investments
Market value brought forward 1 April 2021 10,635,484 610,000 11,245,484
Additions at cost 18,573 - 18,573
Disposals at cost - (135,000) (135,000)
Withdrawals (142,712) - (142,712)
Net transfers - 135,000 135,000
Gain/(Loss) on revaluation 376,745 325,000 701,745
------------------------------------------------ ----------------------------------------------- ------------------------------------------------
Market value brought forward 1 April 2022 10,888,090 935,000 11,823,090
Additions at cost
Disposals at cost
Withdrawals - - -
Net transfers - - -
Gain/(Loss) on revaluation (157,142) - (157,142)
------------------------------------------------ ----------------------------------------------- ------------------------------------------------
Market value as at 31 March 2023 10,730,548 935,000 11,665,548
================================================== ============================================== ==================================================

The Endowment Trust of the R C Diocese of Aberdeen (“the Company”) is a company limited by guarantee set up to hold the investments gifted or bequeathed to the Diocese for specific and general purposes. The Company is a charitable company which holds its funds in investments listed on a recognised stock exchange and in heritable property. At 31 March 2023 the R C Diocese had ownership of 86% of the total fund (2022 – 86%) as represented in the above note.

The investment has been made to provide ongoing income for parishes, curial funds and Diocesan projects.

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets. Holdings in common investment funds, unit trusts and openended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at date of trade at cost (that is their transaction value).

The significance of financial instruments to the ongoing financial sustainability of the Diocese is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report.

26

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 (continued)

9. DEBTORS

DEBTORS: amounts falling due after more than one year
2023 2022
£ £
Personal and other loans 11,000 11,000
==================================== ====================================
The loans are granted interest free and have no fixed repayment terms.
DEBTORS: amounts falling due within one year
2023 2022
£ £
Car loans to clergy 29,753 54,135
Prepaid insurance - 58,566
Sundry debtors and prepayments 771,191 345,412
------------------------------------ ------------------------------------
800,944 458,113
==================================== ====================================
CREDITORS: amounts falling due within one year
2023 2022
£ £
Sundry creditors and accruals 99,693 136,925
Parish creditors - 43,933
Loan to Parish 4,500 4,500
Loan from Bank of Scotland 21,014 21,014
------------------------------------ ------------------------------------
125,207 206,372
==================================== ====================================
CREDITORS: amounts falling due after one year
Loan to Parish 36,000 38,250
Loan from Bank of Scotland 631,437 652,494
------------------------------------ ------------------------------------
667,437
====================================		 690,744
====================================
  1. CREDITORS : amounts falling due within one year

The loan to the Parish is interest free and to be repaid over a maximum of 20 years. There are no fixed repayment terms.

The loan from the Bank of Scotland is for a fixed term of 25 years. Interest is charged at 4.85% per annum with monthly repayments of £4,435.48. The loan is secured by a standard security over St Mary’s House.

27

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

11. FINANCIAL INSTRUMENTS

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£|£| |Carrying amount of financial assets| |Financial assets measured at amortised cost|782,191|356,412| |Financial assets measured at fair value through profit and loss|10,730,549|10,888,090| |===================================================|===================================================| |Carrying amount of financial liabilities| |Financial liabilities measured at amortised cost|792,644|898,107| |===================================================|= ===============================================|

----- End of picture text -----

Financial assets measured at amortised cost consist of prepayments and loans.

Financial assets measured at fair value through profit and loss comprise of listed investments.

Financial liabilities measured at amortised cost comprise of accruals and loans.

12. FUNDS

TOTAL FUNDS

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£|£| |Balance brought forward|23,080,371|21,806,375| |Net Movement in Funds|755,812|1,273,996| |---------------------------------------------------|---------------------------------------------------| |Balance carried forward|23,836,183|23,080,371|

----- End of picture text -----

UNRESTRICTED FUNDS

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Incoming|Resources|Transfers|Gains/| |At 1/4/22|resources|expended|(note 13)|(losses)|At 31/3/23| |£|£|£|£|£|£| |Unrestricted funds|5,812,058|299,651|(872,627)|951,851|(85,174)|6,105,759| |==============================================|====================================|====================================|====================================|============================================|==============================================| |Incoming|Resources|Transfers|Gains/| |At 1/4/21|resources|expended|(note 13)|(losses)|At 31/3/22| |£|£|£|£|£|£| |Unrestricted funds|5,380,563|333,830|(611,971)|520,569|189,067|5,812,058| |==============================================|====================================|====================================|====================================|============================================|==============================================|

----- End of picture text -----

28

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

12. FUNDS ( continued)

Unrestricted funds are made up of general and designated funds as detailed below.

GENERAL FUNDS

GENERAL FUNDS
Incoming Resources Transfers Gains/
At 1/4/22 resources expended (note 13) (losses) At 31/3/23
£ £ £ £ £ £
General funds 2,526,155 103,755 (81,293) 265,867 (27,524) 2,786,960
============================================== ==================================== ==================================== ==================================== ==================================== ==============================================
Incoming Resources Transfers Gains/
At 1/4/21 resources expended (note 13) (losses) At 31/3/22
£ £ £ £ £ £
General funds 2,242,713 155,439 (5,205) (5,241) 138,449 2,526,155
============================================== ==================================== ==================================== ==================================== ==================================== ==============================================
DESIGNATED FUNDS
Incoming Resources Transfers Gains/
At 1/4/22 resources expended (note 13) (losses) At 31/3/23
£ £ £ £ £ £
Land & buildings 1 - - - - 1
Administration 401,517 - (409,670) 372,909 (2,567) 362,189
Elgin Convent 527,661 110,617 (51,100) - (187) 586,991
Mensal 93,229 7,730 (88,352) - (648) 11,959
Education 12,713 - - - - 12,713
Bursary Fund A 91,777 - - - - 91,777
Bursary Fund B 18,920 - - - - 18,920
Clergy 242,178 5,334 (67,306) - - 180,206
Insurance premium 158,474 - (70,280) 101,151 - 189,345
Insurance reserve 54,840 - (5,000) 2,420 (733) 51,527
Ogilvie Centre 381,535 3,565 (4,115) 2,945 (320) 383,610
Youth Office 295,897 38,466 (25,094) - (3,795) 305,474
St Michael’s Centre 227,976 16,108 (19,173) 12,250 - 237,161
Schools 554,419 7,974 - - (3,760) 558,633
Fabric Support 98,898 3,758 - - (1,771) 100,885
Fund for Nuns 8,476 2,344 (12,461) - - (1,641)
Sundry 117,392 - (38,783) 194,309 (43,869) 229,049
---------------------------------------------- ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ ----------------------------------------------
3,285,903 195,896 (791,334) 685,984 (57,650) 3,318,799
============================================== ==================================== ==================================== ==================================== ==================================== ==============================================

29

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

12. FUNDS ( continued)

DESIGNATED FUNDS (continued)

The designated funds represent income allocated for a specific purpose.

Administration – fund to allow for the payment of general administration, salaries, accountancy
fees and other miscellaneous expenses.
Elgin Convent – for the property and its maintenance.
Mensal – fund set up to allow for expenses of the Bishop, his residence and office.
Education – funds created for catholic education including the training of catechists.
Bursary A – Training income for Seminarians
Bursary B – Training for Priests and Deacons
Clergy – collected for the support of the clergy.
Insurance premium – collected monthly for the payment of annual insurance premiums.
Insurance reserve - for claims below the insurer’s excess.
Ogilvie Centre – fund for the running of courses for religious education.
Youth Office – fund relating to the development of youth.
St Michael’s Centre – fund for a residential youth centre.
Schools – property rental and maintenance for properties previously schools.
Fabric Support – fund to help with fabric repairs
Fund for Nuns - bequest allocated to provide support to Nuns working in conjunction with
R C Diocese of Aberdeen
Sundry – various smaller funds for specific purposes.
Incoming Resources Transfers Gains/
At 1/4/21 resources expended (note 13) (losses) At 31/3/22
£ £ £ £ £ £
Land & buildings 1 - - - - 1
Administration 394,757 48,982 (204,917) 158,748 3,947 401,517
Elgin Convent 490,949 302 (2,058) 7,468 31,000 527,661
Mensal 94,425 13,939 (71,082) 54,950 997 93,229
Education 11,308 13,407 - (12,002) - 12,713
Bursary Fund A 71,481 7,271 - 13,025 - 91,777
Bursary Fund B 17,451 2,490 (7,591) 6,570 - 18,920
Clergy 236,746 32,562 (184,757) 157,627 - 242,178
Insurance premium 116,280 42,194 - - - 158,474
Insurance reserve 52,530 1,183 - - 1,127 54,840
Ogilvie Centre 379,604 670 (2,639) 3,900 - 381,535
Youth Office 286,435 6,124 (2,500) - 5,838 295,897
St Michael’s Centre 234,469 1,994 (21,157) 12,670 - 227,976
Schools 549,435 - - - 4,984 554,419
Fabric Support 96,173 - - - 2,725 98,898
Fund for Nuns 7,737 - (34,135) 34,874 - 8,476
Sundry 98,069 7,273 (75,930) 87,980 - 117,392
---------------------------------------------- ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ ----------------------------------------------
3,137,850 178,391 (606,766) 525,810 50,618 3,285,903
============================================== ==================================== ==================================== ==================================== ==================================== ==============================================

30

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 (continued)

12. FUNDS ( continued)

RESTRICTED FUNDS

Incoming Resources Transfers Transfers Gains/
At 1/4/22 resources expended (note 13) (losses) At 31/3/23
£ £ £ £ £ £
Small parishes 1,079,163 56,763 (9,000) - (17,191) 1,109,735
Retired priests 105,444 9,309 - - (1,196) 113,557
Communications 5,295 3,173 - - - 8,468
Day for Life 5,073 2,545 - - - 7,618
Justice & Peace 59,266 4,216 - - - 63,482
Education 9,820 62,311 (18,218) - - 53,913
Bishops charities 67,486 2,564 - - (1,209) 68,841
Bursary A 283,225 32,335 (82,474) - (6,048) 227,038
Bursary B 86,130 1,822 - - - 87,952
Clergy support 1,143,617 66,668 (953) 74,403 (20,175) 1,263,560
Historic Churches 289,304 7,531 (3,338) - (5,182) 288,315
Regowan 72,773 5,701 (3,400) - (1,260) 73,814
Hughes Bequest 148 - - - - 148
Meany Trust 13,938 5,141 (5,005) - (218) 13,856
Bishop’s Reserve 157,687 16,494 (3,000) - (2,815) 168,366
Poor of Strathdown 43,723 1,610 - - (762) 44,571
Bergin Trust 124,512 4,742 - - (2,230) 127,024
Lady Bruce for
Chapter 9,853 251 - - (118) 9,986
Quota Fund 401,202 26,515 (15,444) - (7,105) 405,168
Celebrations 13,841 477 - - (223) 14,095
Priests Payments 26,516 1,004 - - (475) 27,045
Fetternear 7,805 - - - - 7,805
Greenlaw Court 567,835 - - - - 567,835
Miscellaneous 214,641 247,695 (215,274) (95,998) 66,207 217,271
---------------------------------------------- ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ ----------------------------------------------
4,788,297
==============================================		 558,867
====================================		 (356,106)
====================================		 (21,595)
====================================		 -
====================================		 4,969,463
==============================================

The income allocated to restricted funds has been granted for a specific purpose. Small parishes - Fund to give financial support to small parishes Retired priests - Fund for the benefit of retired priests Communications/Justice & Peace/ Education/Day for Life - Collections gathered for specific purposes. Bishops charities - To support charities at the discretion of The Bishop Bursary A - Training income for Seminarians Bursary B - Training for Priests and Deacons Clergy Support - For the support of Clergy in the Diocese Historic Churches Regowan - For the upkeep of a house bequeathed to the Diocese Hughes Bequest - Bequest to be used by the Bishop. Meany Trust Bishop’s Reserve Strathdown Trust

31

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

12. FUNDS ( continued)

RESTRICTED FUNDS (continued)

Incoming Resources Transfers Gains/
At 1/4/21 resources expended (note 13) (losses) At 31/3/22
£ £ £ £ £ £
Small parishes 1,047,930 25,968 - (21,179) 26,444 1,079,163
Retired priests 101,674 1,930 - - 1,840 105,444
Communications 4,607 2,218 (1,530) - - 5,295
Day for Life 4,666 1,968 (1,561) - - 5,073
Justice & Peace 59,230 3,577 (3,541) - - 59,266
Education 23,658 40,952 (55,282) - 492 9,820
Bishops charities 65,627 - - - 1,859 67,486
Bursary A 280,297 81,976 (85,978) - 6,930 283,225
Bursary B 83,757 - - - 2,373 86,130
Clergy support 1,128,086 9,923 (25,427) - 31,035 1,143,617
Historic Churches 281,333 - - - 7,971 289,304
Regowan 69,180 4,885 (812) - (480) 72,773
Hughes Bequest 148 - - - - 148
Meany Trust (22,501) 46,282 (10,179) - 336 13,938
Bishop’s Reserve 153,357 - - - 4,330 157,687
Strathdown Trust 42,131 1,220 (800) - 1,172 43,723
Bergin Trust 117,661 3,507 - - 3,344 124,512
Lady Bruce for
Chapter 9,479 192 - - 182 9,853
Quota Fund 394,941 11,465 (15,983) (150) 10,929 401,202
Celebrations 13,156 349 - - 336 13,841
Priests Payments 25,785 226 (226) - 731 26,516
Fetternear 7,805 - - - - 7,805
Greenlaw Court 551,333 17,688 (1,186) - - 567,835
Miscellaneous 220,486 29,616 (40,000) - 4,539 214,641
---------------------------------------------- ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ ----------------------------------------------
4,663,826 283,942 (242,505) (21,329) 104,363 4,788,297
============================================== ==================================== ==================================== ==================================== ==================================== ==============================================

32

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 (continued)

12. FUNDS ( continued)

RESTRICTED FUNDS (PARISHES)

Incoming Resources Transfers Gains/
At 1/4/22 resources expended (note 13) (losses) At 31/3/23
£ £ £ £ £ £
Parish funds 12,480,016 2,515,172 (1,231,607) (930,256) (72,364) 12,760,961
================================================= ============================================== ================================================= ==================================== ============================================ ================================================
Incoming Resources Transfers Gains/
At 1/4/21 resources expended (note 13) (losses) At 31/3/22
£ £ £ £ £ £
Parish funds 11,761,986
=================================================		 2,114,918
==============================================		 (1,352,143)
=================================================		 (499,240)
====================================		 454,495
============================================		 12,480,016
================================================

Included within the total parish funds for 44 parishes are 3 (2022 – 3) individual parishes which have a closing reserve in deficit. The total deficit amounts to £128,595 (2022 - £166,239) which is the result of loans granted to parishes from aggregated parish funds. These loans were granted primarily for renovations and repairs to properties and are being repaid per the loans policy of the Diocese, as a result reducing the individual deficits.

The closing balance includes investments at a market value of £3,970,500 (2022 - £4,039,797) held by the Endowment Trust of the R C Diocese of Aberdeen.

13. FUND TRANSFERS

The fund transfers in the Statement of Financial Activities are the net balance of levies paid by parishes to Diocesan central funds less allowances received by parishes from Diocesan central funds. Grants and gift aid received by the Diocese on behalf of parishes and paid over in their entirety and special collections taken by the parishes and paid over in their entirety to the Diocese are eliminated in the original receiving entity for the purposes of the full Diocesan Statement of Financial Activities and, therefore, do not appear in fund transfers.

33

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible Other net
Fixed assets Investments assets Total 2023
£ £ £ £
General funds 1,038,410 1,517,418
 231,132 2,786,960
Designated funds 731,004 1,366,322 1,221,473 3,318,799
--------------------------------------------- ---------------------------------------------- --------------------------------------------- ----------------------------------------------
Unrestricted funds 1,769,414 2,883,740 1,452,605 6,105,759
Restricted funds 566,871 4,126,307 276,285 4,969,463
-------------------------------------------- ---------------------------------------------- --------------------------------------------- ----------------------------------------------
2,336,285 7,010,048 1,728,621 11,075,222
Restricted funds – parishes 6,213,125 4,655,500 1,892,336 12,760,961
---------------------------------------------- ------------------------------------------------- ---------------------------------------------- ---------------------------------------------------
8,549,410 11,665,548 3,620,957 23,836,183
============================================== ================================================= ============================================== ===================================================
Tangible Other net
Fixed assets Investments assets Total 2022
£ £ £ £
General funds 1,037,197 1,823,797 (334,839) 2,526,155
Designated funds 731,006 1,351,230 1,203,668 3,285,903
--------------------------------------------- ---------------------------------------------- --------------------------------------------- ----------------------------------------------
Unrestricted funds 1,768,203 3,175,026 868,829 5,812,058
Restricted funds 566,870 3,923,267 298,160 4,788,297
-------------------------------------------- ---------------------------------------------- --------------------------------------------- ----------------------------------------------
2,335,073 7,098,293 1,166,989 10,600,355
Restricted funds – parishes 6,199,534 4,724,797 1,555,685 12,480,016
---------------------------------------------- ------------------------------------------------- ---------------------------------------------- ---------------------------------------------------
8,534,607
==============================================		 11,823,090
=================================================		 2,722,674
==============================================		 23,080,371
===================================================

15. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

2023 2022
£ £
Net movement in funds 755,812 1,273,996
Depreciation charge 12,085 11,298
Investment income shown in investing activities (795,139) (461,925)
(Gain)/Loss on investments 157,538 (732,745)
(Gain)/Loss on sale of property/land - (15,180)
(Increase)/Decrease in debtors (342,825) (231,113)
(Decrease)/Increase in creditors (81,165) (6,838)
--------------------------------------------------- ---------------------------------------------------
Net cash (used in)/from operating activities (293,694) (162,507)
=================================================== ===================================================
  1. ANALYSIS OF CHANGES IN NET DEBT
At 1 April 2022 CashflowsAt 31 March 2023 CashflowsAt 31 March 2023
Cash at bank and in hand 3,150,676 451,249 3,601,925
Debt due within one year (25,514) - (25,514)
Debt due in more than one year (690,744) 21,057 (667,437)
---------------------------------------------- ----------------------------------------------
 ----------------------------------------------
2,434,418 472,306 2,908,974
============================================== ============================================== ==============================================

34

R C DIOCESE OF ABERDEEN

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023 (continued)

17. RELATED PARTY TRANSACTIONS

The Endowment Trust of R C Diocese of Aberdeen (“the Company”) is a company established to hold investments gifted or bequeathed to the Diocese for specific and general purposes. The Trustees of the Diocese are the Directors of the Company and other members of the Management Committee are members of the Company. Details of the Diocesan share of the assets of the Company are shown in note 8 to the financial statements.

Endowment income of £548,730 (2022 - £291,533), including £277,580 for parishes (2022 - £122,598), was received from the Endowment Trust of R C Diocese of Aberdeen as shown in note 2 to the financial statements. In addition, the Diocese received £12,000 (2022 - £12,000) for accountancy fees and paid rent of £9,000 (2022 - £12,600) to the Endowment Trust.

Donations of £117,500 (2022: £17,500) were received from the Garioch Charitable Trust towards the work within the Diocese of the Dominican Sisters and Choral Director.

A grant of £10,665 was received from the Bishop Hay’s Trust (2022: £9,679).

It is part of the package available to priests that they can borrow up to £5,000 towards the purchase of a car, which is a necessary tool to enable the priest to carry out his duties within his parish. Loans are repayable over a maximum 4-year period. Accordingly, 1 of the priests who is also a Trustee has a car loan at the year end, being £2,383 (2022 - £5,000) due by

35